Facebook says Libra may never see the light of day. In its quarterly report, the social network reminded investors that its proposed currency, called Libra, is "based on new and unproven technology," adding that the legal environment surrounding digital currencies is "uncertain and evolving." That could cause Libra to be delayed or even blocked, it said.
Facebook revealed its ambitions for Libra a month and a half ago. Since then, it has faced skepticism and backlash from government bankers and politicians, who have criticized Facebook's track record on privacy and warned that its plan to launch a private currency to billions of people could be risky.
However, during Facebook's quarterly earnings call CEO Mark Zuckerberg struck an optimistic tone, saying that the company will spend "however long it takes" to earn regulators' approval before launching. And a company spokesperson implied that the regulatory uncertainty around Libra and intense scrutiny of the project is part of the plan, telling CNBC: "Engaging with regulators, policymakers, and experts is critical to Libra's success. This is the whole reason that Facebook, along with other members of the Libra Association, shared our plans early." If you say so!
How America's adversaries could use cryptocurrency to push back. A news report published last week alleges that the administration of Venezuelan president Nicolás Maduro has devised a new scheme to convert airline taxes into Bitcoin and ultimately US dollars and evade US sanctions. It's only the latest sign of the determination on the part of several US adversaries to conduct international trade using systems outside America's reach.
The role of the US dollar as the world's reserve currency gives America unique leverage over its adversaries during conflict: it can shut off access to the dollar-based financial system. But according to a new report from a national security-focused think tank in Washington, DC, Venezuela is one of four "crypto rogues"—Iran, Russia, and China are the others—that appear to have long-term ambitions to build new, alternative financial "pipelines" using blockchain technology. Read more here.
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Loose Change
Fill your pockets with these newsy tidbits.
- DARPA is apparently investigating blockchain technology for "secure messaging" applications. (Decrypt)
- The National Basketball Association has teamed with the creator of CryptoKitties to develop NBA-branded digital collectibles.(CoinDesk)
+This blockchain-base card game shows us the future of ownership (TR) -
The US Internal Revenue Service has begun sending letters to more than 10,000 cryptocurrency holders warning them that they may have violated tax laws. (Wall Street Journal)
How the hell are cryptocurrency users supposed to file their taxes? (TR)
- The US Securities and Exchange Commission will let a blockchain gaming company sell tokens without classifying them as securities—the first such "no action letter" for an Ethereum project. (Decrypt)
- Monex Group, which owns the popular Japanese cryptocurrency exchange CoinCheck, has applied to join the Libra Association. (CoinDesk)
